In the short-run you know that firms and households expect inflation of 3.6% next year. There are no supply shocks and cyclical unemployment is 1.09 %. Lambda is 0.5. With this information, what is the inflation rate today? Write your answer as a percentage, round at one (1) decimal, and do not write the percentage sign. Use a minus sign if needed.
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- Suppose that the nominal interest rate is 12%, the inflation rate is 5%, and the investor's tax rate is 35%. Find the tax distortion of inflation. Write your answers as a percentage. Also round your answers to the nearest 100th decimal points. For example, write 3.45 for 3.45%. Type your numeric answer and submitWhat are two possible negative outcomes of the increased inflation to 7.3% currently in Australia? don't provide plagiarism aSuppose there are 1200 units of money on an island, but money grows by 5.32% per year. Islanders spend each unit of money 2.3 times per year on average and this spending grows by 1.98%. The price level is at 34. GDP is expected to grow at 4.83%. What is the level of inflation? Answer this as a percentage without the percentage sign and round this to two digits after the decimal. ex. If you found the rate to be 5.125%, answer 5.13.
- Define the term, “inflation” and indicate the index that is used to measure the rate of inflation.If inflation was 1% which policy would be use ? (Contractionary or expansionary )The steps involved in calculating the consumer price index, in order, are as follows: * Choose a base year, fix the basket, compute the inflation rate, compute the basket's cost, and compute the index. Choose a base year, find the prices, fix the basket, compute the basket's cost, and compute the index. Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index. Fix the basket, find the prices, compute the inflation rate, choose a base year and compute the index.
- Calculative an Inflation Rate. A country reports a price index of 55 in 2005 and 60 in 2006. What is the inflation rate between 2005 and 2006? Answer as a percentage and round to two decimal places (xx.xx%).Please give back one of my other questions that was the same as this. I had to resubmit this as I incorrectly typed the percentages before. There is a persistent fear that there will be a high level of deflation. Many economists warn that it may be worse for the economy than if there is high inflation. Suppose that Herb is in debt and has to pay a 5.25% nominal interest rate. He expected inflation to be 1.50%. Instead, inflation is −2.00% (deflation). What is the real interest rate that Herb is expected to pay, and that he is actually paying?QUESTION 10 If prices grow by 2.9% every year, over 9 years, what is the total inflation rate? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).
- Explain the relationship between inflation and the time value of money.is these totals inflation, deflation, disinflation or hyperinflation 1992 140.3 1993 144.5 144.5 -140.3=4.2/140.3=0.029 *100 =2.9% 1994 148.2 148.2 -144.5=3.7/144.5=0.025*100 = 2.5%An investment offers a 12% total return over the coming year. Bill Morneau thinks the total real return on this investment will be only 7%. What does Morneau believe the inflation rate will be over the next year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) please use fisher equation